ZURICH: Swiss banking giant Credit Suisse said Wednesday that litigation costs and the financial fallout from the war in Ukraine pushed it deeper into the red in the first three months of the year.
Credit Suisse, which later this week is due to face angry shareholders following a string of scandals and crises, posted a worse-than-expected net loss of 273 million Swiss francs ($282 million, 267 million euros).
That was wider than the 252-million-franc net loss posted a year earlier, and also worse than analyst expectations, which had already been lowered after the bank warned last week it would take a financial hit from Russia’s invasion of Ukraine.
It calculated that the losses related to the war amounted to 206 million Swiss francs in the period from January to March.
In addition, Credit Suisse said its operating expenses were higher year-on-year, driven in particular by higher litigation expenses of 703 million francs.
The bank also saw its revenue for the quarter contract more than expected.
It plunged by 42 percent overall year-on-year to 4.4 billion francs, dragged down by a 51-percent drop in revenues in its investment bank and a 44-percent fall in its wealth management business.
“The first quarter of 2022 has been marked by volatile market conditions and client risk aversion,” Credit Suisse chief Thomas Gottstein said in a statement.
“These conditions, together with the impact from our reduction in risk appetite in 2021 as we took decisive actions to strengthen our overall risk and controls foundation, had an adverse impact on our net revenues,” he explained.
Credit Suisse has been striving to rein in risks after taking a series of hits.
It was rocked in 2021 following the implosions of financial services firms Greensill and Archegos, which cost the bank billions.
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